Collaboration in Alabama city key to economic development

Shipbuilding and the deep water port – 30 miles from the Gulf of Mexico – are at the center of the Mobile, Ala., economy. The port is deep enough to accommodate the huge ships that now transit the Panama Canal. Photo courtesy of Mobile Area Chamber of Commerce

Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis

The European aircraft maker broke ground there in April on a plant to build its A320 craft – the only place in the Western Hemisphere where it will build commercial planes.

It didn't hurt that the generous incentives were involved. The state of Alabama, the city of Mobile, and Mobile County provided more than $160 million in cash and non-cash incentives, said County Commissioner Connie Hudson, who was commission president during the Airbus negotiations.

Locally, incentives often come in the form of infrastructure improvements. But the city has $35 million invested in a huge steel mill and the county $50 million, said Mobile Mayor Samuel Jones.

No fluke

So, it was no fluke that Mobile landed the $600 million Airbus plant that will bring more than 1,000 jobs. The average wage will be about $50,000, Jones said.

In addition to Charleston, the Alabama port city would be a good location for Wilmington to emulate in its economic development efforts, economist Jay Garner said when he spoke to the Wilmington Chamber of Commerce in April. Garner was Mobile's economic development chief from 1985 to 1994.

Foreign money

Mobile has landed other huge heavy-industry investments, much of it from overseas, Jones said. And much of it is connected to its port facilities.

In fact, shipbuilding and the deep water port – 30 miles from the Gulf of Mexico – are at the center of the area's economy. The port is deep enough to accommodate the huge ships that now transit the Panama Canal.

Austal USA expanded its ship-building operations for the Navy, increasing its work force to more than 3,200 now from 100 in 1999, said Leigh Perry-Herndon, vice president of marketing and communications for the Mobile Area Chamber of Commerce.

In 2010, ThyssenKrupp Steel opened a $4.5 billion plant and employs 1,750, according to the chamber, lured by improvements to the port.

Though Mobile's metro area is larger than Wilmington's, the cities have common traits. Both are ports, and both suffered major economic losses – Wilmington with the exit of the Atlantic Coast Line railroad, and Mobile with the closure of an Air Force base. Both came back, but the Wilmington area lost two major projects to other areas as Caterpillar and Continental Tire decided to take their plants elsewhere.

Key to success

So, how does Mobile do it?

It offers a one-stop shop for economic development and a regional approach, Jones said, adding that the city and Mobile County contract with the chamber to provide economic development services.

Corporate prospects "tell us that we work exceptionally well together as a team – federal, state, county, city, development board and the chamber," said Hudson. "We are not off doing our own thing. I hear that over and over."

Since efforts were consolidated under the chamber in 1989, development has taken off, Jones said.

But the area's growth came out of economic disaster as the World War II-era Brookley Air Force Base closed in 1969, costing the area 17,000 jobs.

The recovery took 25 years, Perry-Herndon said. Interestingly, what is now known as the Brookley Aeroplex will be home to the new Airbus facility, its 9,600-foot-long runway a particular attraction.

Behind that recovery is a well-oiled machine.

The chamber operates on a five-year plan "with benchmarks, metrics that we as a chamber put out there that we are going to do," Perry-Herndon said.

Alabama Power also plays a major role in attracting growth, Perry-Herndon said. The company offers a wide selection of economic development services, including building and site selection and labor force analysis. "They are almost always at the table," she said.

The chamber's efforts continue even after the deal is closed, she said.

"There's a good deal of trust, a good deal of continuing to manage the relationship, especially when you have elective offices that change," Perry-Herndon said.

The port is central to just about everything in Mobile.

Perry-Herndon attributed much of the port's growth to a move in the 1990s that turned the Port Authority director's post from a political appointment to one that is selected by the port's board.

"That has made a huge difference in the community," and now actions are in the best interest of the port regardless of who is in office, she said.

Staying the course

"Mobile has worked very effectively in sustaining their economic development initiative," Garner said, founder of Garner Economics, an Atlanta site selection and economic research company.

They "make sure that the private and public sectors have a well-funded and well-supported economic development program.

"As a result they have had effective staff leaderships and a very proactive program to attract targeted industries.

"There's a common denominator in most communities who have successful economic development organizations," Garner continued. "It's usually not fragmented," he said, citing Jacksonville, Fla., and Austin Texas as other examples.

"Even if it is fragmented," as is the case in Charleston and Savannah, "they are still working in a collaborative way."

Perry-Herndon echoed that need for groups and political bodies to work together.

"I think this community understands and trusts the work of the economic development team," she said, "and our goal is not only to bring new investment but to increase the wealth of the community.

"We are playing to our natural strength. It has allowed us to say no to some things that wouldn't be good for the community."

<p>Mobile, Ala., thinks it's got a lot going for it. Apparently Airbus agrees.</p><p>The European aircraft maker broke ground there in April on a plant to build its A320 craft – the only place in the Western Hemisphere where it will build commercial planes.</p><p>It didn't hurt that the generous incentives were involved. The state of Alabama, the city of Mobile, and Mobile County provided more than $160 million in cash and non-cash incentives, said County Commissioner Connie Hudson, who was commission president during the Airbus negotiations.</p><p>Locally, incentives often come in the form of infrastructure improvements. But the city has $35 million invested in a huge steel mill and the county $50 million, said Mobile Mayor Samuel Jones.</p><p><b>No fluke</b></p><p>So, it was no fluke that Mobile landed the $600 million Airbus plant that will bring more than 1,000 jobs. The average wage will be about $50,000, Jones said.</p><p>In addition to Charleston, the Alabama port city would be a good location for Wilmington to emulate in its economic development efforts, economist Jay Garner said when he spoke to the Wilmington Chamber of Commerce in April. Garner was Mobile's economic development chief from 1985 to 1994.</p><p><b>Foreign money</b></p><p>Mobile has landed other huge heavy-industry investments, much of it from overseas, Jones said. And much of it is connected to its port facilities. </p><p>In fact, shipbuilding and the deep water port – 30 miles from the Gulf of Mexico – are at the center of the area's economy. The port is deep enough to accommodate the huge ships that now transit the Panama Canal.</p><p>Austal USA expanded its ship-building operations for the Navy, increasing its work force to more than 3,200 now from 100 in 1999, said Leigh Perry-Herndon, vice president of marketing and communications for the Mobile Area Chamber of Commerce.</p><p>In 2010, ThyssenKrupp Steel opened a $4.5 billion plant and employs 1,750, according to the chamber, lured by improvements to the port. </p><p>Though Mobile's metro area is larger than Wilmington's, the cities have common traits. Both are ports, and both suffered major economic losses – Wilmington with the exit of the Atlantic Coast Line railroad, and Mobile with the closure of an Air Force base. Both came back, but the Wilmington area lost two major projects to other areas as Caterpillar and Continental Tire decided to take their plants elsewhere.</p><p><b>Key to success</b></p><p>So, how does Mobile do it?</p><p>It offers a one-stop shop for economic development and a regional approach, Jones said, adding that the city and Mobile County contract with the chamber to provide economic development services.</p><p>Corporate prospects "tell us that we work exceptionally well together as a team – federal, state, county, city, development board and the chamber," said Hudson. "We are not off doing our own thing. I hear that over and over."</p><p>Since efforts were consolidated under the chamber in 1989, development has taken off, Jones said.</p><p>But the area's growth came out of economic disaster as the World War II-era Brookley Air Force Base closed in 1969, costing the area 17,000 jobs. </p><p>The recovery took 25 years, Perry-Herndon said. Interestingly, what is now known as the Brookley Aeroplex will be home to the new Airbus facility, its 9,600-foot-long runway a particular attraction.</p><p>Behind that recovery is a well-oiled machine.</p><p>The chamber operates on a five-year plan "with benchmarks, metrics that we as a chamber put out there that we are going to do," Perry-Herndon said.</p><p>Alabama Power also plays a major role in attracting growth, Perry-Herndon said. The company offers a wide selection of economic development services, including building and site selection and labor force analysis. "They are almost always at the table," she said.</p><p>The chamber's efforts continue even after the deal is closed, she said.</p><p>"There's a good deal of trust, a good deal of continuing to manage the relationship, especially when you have elective offices that change," Perry-Herndon said.</p><p>The port is central to just about everything in Mobile.</p><p>Perry-Herndon attributed much of the port's growth to a move in the 1990s that turned the Port Authority director's post from a political appointment to one that is selected by the port's board.</p><p>"That has made a huge difference in the community," and now actions are in the best interest of the port regardless of who is in office, she said.</p><p><b>Staying the course</b></p><p>"Mobile has worked very effectively in sustaining their economic development initiative," Garner said, founder of Garner Economics, an Atlanta site selection and economic research company. </p><p>They "make sure that the private and public sectors have a well-funded and well-supported economic development program.</p><p>"As a result they have had effective staff leaderships and a very proactive program to attract targeted industries.</p><p>"There's a common denominator in most communities who have successful economic development organizations," Garner continued. "It's usually not fragmented," he said, citing Jacksonville, Fla., and Austin Texas as other examples.</p><p>"Even if it is fragmented," as is the case in Charleston and Savannah, "they are still working in a collaborative way."</p><p>Perry-Herndon echoed that need for groups and political bodies to work together.</p><p>"I think this community understands and trusts the work of the economic development team," she said, "and our goal is not only to bring new investment but to increase the wealth of the community.</p><p>"We are playing to our natural strength. It has allowed us to say no to some things that wouldn't be good for the community."</p><p><i></p><p><a href="http://www.starnewsonline.com/section/topic99"><b>Wayne Faulkner</b></a>: 343-2329</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @bizniznews</i></p>